Sapphire Real Estate Services
Qawra Seafront,
Qawra SPB 1501, Malta
Tel: (Malta Code) 00356-2157-7474 / 2757-7474
Mob: (Malta Code) 00356-7957-7474
BUYING MALTA PROPERTY
Sapphire Real Estate Malta will not only accompany you to visit the properties you like, but we will also assist you with the buying process to ensure everything runs smoothly.
Once you have selected your property, and your offer has been made and accepted, as well as terms and conditions are agreed upon, then a preliminary agreement (known as a Konvenju) is signed. This is an agreement whereby the vendor and the purchaser bind themselves to sell or to buy the property at an agreed price and within an agreed timeframe.
A deposit (typically, but not specifically 10%) is paid and is held by the notary, Malta real estate agent or vendor depending on what has been agreed.
The preliminary agreement is usually written by a notary and signed in their presence. When it comes to Malta real estate, notaries are the only officials legally empowered to publish deeds.
The agreement may be subject to some conditions (e.g. loan approval, architect’s report, etc.), but a time frame is usually given within which these are valid so as not to leave the vendor in uncertainty for too long.
Once the notary has carried out the searches on the title of the property, and bank loans are approved - then the contract can be signed.
A loan would involve a sanction letter and it is important that all insurances are taken out and conditions of sanction are met well before contract due date to avoid any last minute hiccups.
When dealing with real estate in Malta, typical time frames between the preliminary agreement and contract is 3 to 6 months. This time frame can be much longer or shorter as part of negotiations.
If a bank hypothec needs to be cleared on contract, then the contract will usually be held at a bank - although the notary might collect funds due to the bank themselves, in which case this would not be necessary.
If a loan is to taken out to purchase the Malta property, then the contract will be held at the issuing bank.
A preliminary agreement or promise of sale must be signed undertaking to purchase a property of not less than €104,509 in the case of an apartment or maisonette, and not less than €174,333 for a house or any other type of residential property. Naturally, properties in shell form or requiring renovation may be purchased at lower figures, provided that the estimated cost of works for completion (as confirmed by an Architect) plus purchase price total not less than the €104,509 in the case of an apartment, and not less than €174,333 for any other type of residential property. The thresholds for the purchase of Malta real estate are adjusted on a yearly basis according to the inflation rate.
An A.I.P. (Acquisition of Immovable Property) Permit (cost €233) is required from the Ministry of Finance and is normally granted within 2 months of application. The notary will apply for the permit after a promise of sale agreement has been signed. A non-resident may sell his/her property to another non-resident, provided that efforts have been made to find a local buyer. Once again, approval is required from the Malta Income Tax Department. Moneys for this purchase have to originate from a source outside of Malta.
Properties having historical value or listed as part of the Island's heritage may not be purchased by non-residents. This does not apply to most farmhouses and houses of character on the market.
No Stamp Duty is charged on the value of the movable property (furniture and fittings) being transferred with the immovable property.